Crypto Power Plays: Robinhood Acquires Bitstamp, FalconX Grabs Monarq Stake

Robinhood Makes $200M Leap into Institutional Crypto

Robinhood Markets, Inc. has officially closed its $200 million acquisition of Bitstamp, one of the longest-standing cryptocurrency exchanges in the industry. The deal, first announced in mid-2024, gives Robinhood immediate access to more than 50 regulatory licenses and a strong institutional presence across Europe, the United Kingdom, and Asia.

Bitstamp, headquartered in Luxembourg, serves over 5,000 institutional clients and around 50,000 retail users, with the majority of its trading volume coming from institutions. The integration of Bitstamp into Robinhood’s crypto division includes connectivity to the firm’s proprietary Smart Exchange Routing system, aiming to enhance execution quality for global users.

The move comes as Robinhood’s crypto revenues continue to surge, reaching $252 million in Q1 2025. Bitstamp, meanwhile, brought in $95 million in revenue over the past year. The U.S. trading platform expects to incur approximately $65 million in integration-related expenses through the remainder of the year.

Following the acquisition, Robinhood’s stock rose by 2.77% on June 2, with modest gains continuing in after-hours trading.

The acquisition is part of Robinhood's broader international expansion. Just weeks earlier, the company struck a $179 million deal to acquire Canadian crypto platform WonderFi, reinforcing its foothold in North America.

Looking ahead, Robinhood CEO Vladimir Tenev has signaled strong interest in real-world asset tokenization, calling it a potential “unlock” for democratizing access to traditionally illiquid assets like private equities. During a recent earnings call, Tenev suggested that tokenizing firms such as OpenAI or SpaceX could become a reality in the near future.

FalconX Targets Institutional Scale With Monarq Stake

In a separate strategic maneuver, FalconX, a leading crypto prime broker, has reportedly acquired a majority stake in the parent company of Monarq Asset Management. The firm, previously known as LedgerPrime and affiliated with the now-defunct FTX, is registered in the Cayman Islands.

The acquisition, reported by Bloomberg on June 2, is part of FalconX’s ongoing effort to grow its asset management capabilities and deepen relationships with institutional investors.

While terms of the deal were not disclosed, the acquisition follows a series of aggressive moves by FalconX. Earlier this year, it acquired derivatives-focused startup Arbelos Markets and partnered with Standard Chartered to enhance institutional crypto banking infrastructure.

FalconX, which claims access to 94% of global digital asset liquidity and has facilitated over $1.5 trillion in trading volume, views Monarq as a vehicle to scale its quantitative trading models and diversify its institutional client base.

The expansion comes despite regulatory pressure. In May 2024, FalconX reached a $1.8 million settlement with the U.S. Commodity Futures Trading Commission (CFTC) for allegedly offering unregistered services to U.S. customers. As part of the agreement, FalconX ceased offering services to U.S. residents.